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AAR TO TAKE A CHARGE RELATED TO DOWNSIZING OF AIRFRAME MAINTENANCE OPERATION

 AAR TO TAKE A CHARGE RELATED TO DOWNSIZING
 OF AIRFRAME MAINTENANCE OPERATION
 ELK GROVE VILLAGE, Ill., May 14 /PRNewswire/ -- AAR Corp. (NYSE: AIR) announced today that it will take a pretax charge of $5.8 million ($3.8 million, or 24 cents per share after-tax) in the quarter ending May 31, 1992, primarily as a result of noncash losses from a writedown of assets no longer needed for restructured operations at its Oklahoma City-based aircraft service unit.
 The unit has undergone downsizing to reduce costs, improve efficiency and meet current market demand; continuing low demand for airframe maintenance services over the past 18 months, due to a persistently recessionary economy and overcapacity for such services in the industry, resulted in underutilization of the facility and its workforce. During the company's fiscal year ended May 31, 1991, the unit recorded an operating loss of $2.3 million; for the nine-month period ending Feb. 29, 1992, the operating loss was $4.6 million.
 Ira A. Eichner, chairman of the board and chief executive officer of AAR, at a presentation to a group of financial analysts in New York today, commented, "The market for airframe maintenance services has been depressed over a significant period with no indications of a recovery in an acceptable timeframe. We have seen signs of a resurgence in other of the company's product lines and have taken this initiative to prevent an improving performance being diluted by further losses at the Oklahoma- based unit."
 AAR Corp. is a leading supplier of aerospace/aviation products and services. The company primarily distributes parts and equipment, performs technical services, and manufactures proprietary products for the aviation industry in the United States and abroad.
 -0- 5/14/92
 /CONTACT: Office of the Chairman of AAR, 708-439-3939/
 (AIR) CO: AAR Corp. ST: Illinois, Oklahoma IN: AIR SU:


GK -- NY078 -- 0235 05/14/92 12:19 EDT
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Publication:PR Newswire
Date:May 14, 1992
Words:312
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